The Bermuda government announced the launch of a pilot program to test the BMDT stablecoin pegged to the Bermuda dollar.
The project is being implemented in partnership with Stablehouse, a payments startup.
Stablehouse is a stablecoin issuer. The startup is being consulted by former Tether CEO Phil Potter, who will share his experience with the government in providing the digital Bermuda dollar, BMDT.
The island’s authorities are planning to use the BMDT to find out whether the digital currency can be utilized to purchase essential goods and services in the country. The initiators of the stablecoin launch also want to gather important information and data on the issue if merchants will easily accept digital tokens as a payment method. To do this, they recruited three salespeople, as well as 20 people, who were awarded a scholarship in the form of free BMDTs to complete trade deals.
The token will operate on the Liquid Network, a settlement and payment network developed by Blockstream.
The token incentive initiative has been developed by local authorities since 2019 and it is a steppingstone of a comprehensive plan to bring digital currency to the island.
